Scomi Monorail Project in Brazil to Commence Next Month

By Farhana Poniman KUALA LUMPUR, June 26 (Bernama) -- Scomi Group's unit, Scomi Engineering Bhd, will commence construction of a monorail project in Sao Paolo, Brazil, next month, says Group Chief Executive Officer Shah Hakim Zain. "The total value for the project is RM2.7 billion (US$844.44 million), of which our portion is RM600 million (US$187.65 million)," he told Bernama after Scomi Engineering's annual general meeting. He said manufacturing activities would be undertaken at a plant located in Palmares and delivery of the first monorail vehicle was scheduled for April next year. The entire project is expected to be completed by 2015. On capital expenditure, Shah said the group would continue investing between RM20 million (US$6.25 million) and RM30 million (US$9.38 million) annually on research and development. The group was recently shortlisted by India's IL&FS Transportation Network Ltd (ITNL) to undertake Chennai's 57 km monorail project worth an estimated RM6 billion (US$1.88 billion). "Hopefully we will find out the outcome within the next three to four months," he said. On new projects, Shah said the group was also eyeing projects in Rio de Janeiro and Sao Paolo for which tenders would be out in the third quarter. -- BERNAMA